Bonuses for Cost-Cutters Act of 2025
The Bonuses for Cost-Cutters Act of 2025 would broaden and formalize federal incentives for employees to identify wasteful or unnecessary government spending. The bill expands who may receive cash awards, raises the award cap, and clarifies that awards can be given for both identifying wasteful expenses and for disclosures related to fraud, waste, or mismanagement. It also adds transparency requirements (reporting to Congress and annual certifications by the White House Office of Personnel Management), ties potential wasteful spending to budget rescission processes, and creates governance provisions (including who can make determinations and who cannot receive awards). The overall aim is to strengthen cost-saving disclosures and reward eligible employees, while tightening oversight and accountability around identified wasteful spending.
Key Points
- 1Creates a formal cash-award program tied to employees’ identification of wasteful expenses, resulting in cost savings for their agency.
- 2Increases the award cap from $10,000 to $20,000.
- 3Expands who may determine wasteful expenses (including adding the Chief Financial Officer to the review process) and broadens eligible basis for awards to include both disclosures and identifications of wasteful expenses.
- 4Narrows the award basis to disclosures of fraud, waste, or mismanagement, clarifying the scope of eligible awards.
- 5Requires agency heads to report to the President (for potential budget rescission under the Congressional Budget and Impoundment Control Act) when wasteful expenses are identified; designates an alternative reviewer if an agency has no CFO.
- 6Adds transparency requirements: agency heads must publish information on wasteful expense disclosures and the total cash awards under this program, aligned with existing reporting requirements.
- 7Prohibits awards to Inspector General personnel and to employees who are ineligible for other cash awards under current law.
- 8Requires the Director of the Office of Personnel Management to certify annually that each agency’s cash-award program complies with the new requirements.
- 9Establishes ongoing congressional oversight: the Comptroller General must report every three years on the program’s operation and offer legislative change recommendations.